Grocery and liquor franchise retailer Spar is planning to open as many as 40 high-end stores, with the first set to open in the fourth quarter, as the retailer targets affluent shoppers.
SA food retailers are increasingly tailoring stores to wealthy or low-income customers in an increasingly polarised market.
“The strategy includes converting high-end niche Spar stores while also opening new locations. We anticipate around 30 to Spar Gourmet stores though no fixed timeline has been set,” Spar Southern Africa CEO Max Oliva said.
The SA retailer owns several country licences of the Dutch Spar group.
Oliva on Wednesday told investors at a company capital markets day that the Spar Gourmet format would target customers in high-end residential and urban areas.
“Key focus areas include premium food, coffee, bakery and indulgent products, with a curated assortment tailored to meet the needs of a more affluent customer base,” he said.
Spar Gourmet and discount chain SaveMor are part of the group’s segmentation strategy, similar to what rivals Pick n Pay and Shoprite have been doing in recent years.
To strengthen its position in the competitive discount grocery sector, Spar will also revamp the SaveMor chain.
SA’s higher-end grocery market is dominated by Woolworths, followed by Shoprite’s Checkers chain. In the discount space, Shoprite has Usave and Pick n Pay has Boxer.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.